Agriculture is a serious, capital-intensive business with a long return on investment.
But in recent years, this sector has seen significant growth.
Of course, this is due to large holdings that have the opportunity to attract large-scale investments and, at their expense, constantly expand production, using the latest IT solutions.
An important role in this is played by the state, which helps agricultural enterprises by subsidizing low interest rates on loans.
Some numbers:
1.If in 2019 Russian exports amounted to $ 25.5 billion rubles, then for 7 months of 2020 sales abroad reached $ 15.4 billion, adding 16.6% year-on-year.
2.This year, the export of many important crops for the population has grown significantly: sugar + 200%, pork + 200%, poultry + 100%, wheat + 30%.
3.For 9 months of 2020, meat sales abroad increased by 80% to $ 610 million. The main shipments went to China, Vietnam and Ukraine.
At the same time, domestic prices for pork have been falling for the fifth year due to the expansion of production: 2019 — 4 million tons, 2020 — 4.3 — 4.5 million tons are
expected.
Production has doubled in 10 years.
Vietnam allowed the import of 20 Russian pork producers: Cherkizovo, for example, will ship 500 tons monthly from 2021.
4.In 2019, China purchased 63 thousand tons of poultry from Russia, and in the first half of 2020 has already imported 113 thousand tons.
This year Cherkizovo plans to increase exports by 65% to $ 100 million. Exports of chicken will grow by 80%.
5.Purchases of sunflower by Turkey accounted for 40% of the total volume of Russian crop exports.
6.Russia exports 64% of sunflower oil.
7.Last year, sugar production reached a record figure of 7.8 mln tons, and exports increased 5 times to 1.5 mln tons.
Thus, today Russia:
№ 5 in the world for meat and poultry production
№ 4 in the world for pork production
№ 3 in the world for the export of poultry to China
But there are also negative trends:
Due to increased production and lower prices, small, uncompetitive private farms are leaving the market.
According to forecasts, up to 75% of small players may leave the market within 5 years.
Rusagro and Cherkizovo are represented on the financial markets from Russian companies related to agriculture.
It is gratifying that recently they have shown a clear upward trend.
